Buhari asks reps for approval to borrow $30bn

President Muhammadu Buhari has requested that the house of representatives approve of a federal government (2016-2018) external borrowing plan to the sum of $29.960 billion.

Buhari also sought a slight amendment of Budget 2016, asking that a total of N180 billion be moved from various line items to the the other in the country’s appropriation act.

In a letter read on the floor of the house on Tuesday by Yakubu Dogara, the speaker, Buhari said the approval of this request would ensure implementation of projects that cut cross across all sectors of the economy.

“I wish to refer to the above subject and to submit that attached draft of the federal government 2016-2018 external borrowing plan for consideration and early approval by the national assembly to ensure prompt implementation of projects,” he said.

The projects cut across all sectors with special emphasis on infrastructure, agriculture, health, education, water supply, growth and employment generation, poverty reduction through social safety net programmes and governance and Financial management reforms among others.

“The total of the projects and programmes under the borrowing (rolling) plan is $29.960 billion made up of proposed projects and programmes loan of $11.274 billion special national infrastructure projects $10.686 billion Euro bonds of $4.5 billion and federal government budget support of $3.5 billion.

“I would like to underscore the fact the projects and programmes in the borrowing plan were selected based on positive technical economic evaluations as well as the contribution they would make to the socio-economic development of the country including employment generation and poverty reduction and protection of the most vulnerable and very poor segment of the Nigerian society.

“The projects and programmes will be implemented in all the 36 states and the Federal Capital Territory (FCT).

“Considering the huge infrastructure deficit currently being experienced in the country and the enormous financial resources required to fill the gap in the face of dwindling resources and the inability of our annual budgetary provisions to bridge the infrastructure deficit.”

Buhari explained that the urgent projects in need of immediate approval in the north east were polio eradication support and routine immunisation project, community and social development project, state education programme investment project, Nigeria youth employment and social support project and Fadama III project; the projects would cost $125 million, $75 million, $125 million, $100 million, $100 million and $50 million, respectively.

“Given the emergency nature of the facilities and the need to consolidate the peace and return the region to normalcy and considering the time it will take to get national assembly’s approvals,” he said.

“It has become inevitable to request for the NASS leadership approval pending the consideration and approval of the 2016-2018 borrowing plan by the national assembly to enable us disburse these funds immediately.”

Source: The cable